Papa John's International Inc (PZZA)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	172,376	185,411	152,050	152,607	147,142	140,806	129,304	133,296	140,731	142,666	160,877	166,610	168,241	149,774	135,746	121,643	90,253	70,423	50,801	34,498
Total assets	US$ in thousands	888,952	860,875	838,427	847,167	954,201	877,565	873,643	864,861	864,227	829,748	836,272	885,626	885,704	889,954	855,744	918,285	872,770	816,675	757,737	718,268
Operating ROA		19.39%	21.54%	18.14%	18.01%	15.42%	16.05%	14.80%	15.41%	16.28%	17.19%	19.24%	18.81%	19.00%	16.83%	15.86%	13.25%	10.34%	8.62%	6.70%	4.80%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $172,376K ÷ $888,952K
= 19.39%

Papa John's International Inc's operating return on assets (operating ROA) has shown a generally increasing trend over the past few years, indicating an improvement in the company's ability to generate profits from its assets.

Starting at 4.80% in March 2020, the operating ROA has steadily climbed to 19.39% by December 2024. This growth suggests that Papa John's has been effectively utilizing its assets to generate operating income.

While there have been fluctuations in the operating ROA figures over the period, the overall trend demonstrates the company's ability to enhance operational efficiency and profitability. The peak operating ROA of 21.54% in September 2024 indicates a particularly strong performance in that quarter.

Investors and analysts often view a rising operating ROA positively, as it signifies an improvement in the company's operational effectiveness and profitability. The consistency in the upward trajectory of Papa John's operating ROA highlights the company's efforts to maximize its asset utilization and generate higher returns for its shareholders.